Unlike manufacturers, service companies do not have an inventory of products.

true / false

The correct answer is: True.

Explanation:

Service firms do not have product inventories because they are not involved in manufacturing processes. However, it does not imply service firms do not have inventories at all. Equipment and furniture are materials that service companies keep in an inventory recorded for accounting purposes.

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

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